News Roundup: Scrutiny committees, Outsourcing values grow, Durham resolves £244m housing debt…
0Councils split over scrutiny committees
Almost half of local authorities believe that scrutiny committees are providing inadequate oversight of council operations, according to a new survey. The poll, carried out by audit firm Grant Thornton, found that while one council had 66 scrutiny meetings in a year, some had just one. Paul Dossett, partner and head of local government at the firm, said: “We know that some councils are doing this with great success so it’s important that those who are struggling receive support to improve their processes so that they are not tempted to fall back into outdated methods of scrutiny.”
Outsourcing values on the rise
The average value of local government outsourcing contracts increased by 15% to £30.3m in 2014, according to consultant Arvato. Its research found that 60% of all council contracts signed in 2014 were second generation outsourcing relationships – extensions, renewals or the replacement of incumbents – up from 37% in 2013. Local government outsourcing contracts signed in 2014 were worth a total of £606m, with a 60/40 split between business process and IT outsourcing deals respectively.
Partner announced for joint venture
Cheshire West and Chester Council has appointed private provider Cofely as its partner for a new joint venture to deliver customer and workplace management services. The JV’s initial responsibilities will include customer services and business operations as well as cleaning, building maintenance and energy compliance services across the council’s estate. As part of the arrangement, Cofely has committed to investing £3m in the authority’s IT infrastructure.
Surrey boasts of major savings
Savings of £69m is set to be made by Surrey County Council during 2014/15, according to new figures. The council said that the figure means the council is on track to have save £330m over the past five years, mainly due to striking better deals with its contractors. Additional factors included joint working with other councils.
Housing transfer set to wipe out debt
Durham Council will rid itself of its £244m housing revenue account debt after agreeing to transfer its housing stock to a newly formed housing association. The council will receive £114m for the sale of the19,000 homes to the new County Durham Housing Group. The Department for Communities and Local Government has agreed to write off the remaining £130m of debt. It is believed that the deal is the largest housing stock transfer by a council in 15 years.
Councils set to freeze council tax levels
More than 100 councils are set to freeze or lower their council tax levels, according to government figures. Communities secretary Eric Pickles welcomed the news, which showed 114 town halls will take up the government’s offer of freeze grant, while eight will reduce bills. The Department for Communities and Local Government said that councils had failed to collect £2.5bn of council tax between 2010 and 2014.
Sutton invests in office block lease
London Borough of Sutton estimates it will make an annual return of 8% on a direct property investment in the borough. The council is in negotiations to buy the leasehold interest on an office block in Wallington, which is set to generate an income for the council of up to £575,000 a year. The council already owns the freehold of the building.
